Final Results
Landore Resources Limited
17 April 2008
Landore Resources Limited
('Landore' or 'the Company')
Final results
for the year ended 31 December 2007
The Board of Landore is pleased to announce its audited results for the year to
31 December 2007.
Chairman's statement
Landore has made enormous progress in 2007 and early 2008 on its path to
becoming a nickel producer in the near term. The primary focus for the Company
has been the Junior Lake Nickel project in the province of Ontario, Canada.
Financial Results
During the year to 31 December 2007 the Group incurred a loss of £2,627,315
(£1,966,244 in 2006). The majority of these expenses represent direct and
indirect investments in mineral exploration projects. The increase is almost
wholly due to the large amount of drilling that took place during 2007.
Junior Lake - Nickel project
The principal focus of the Group's activities is the Junior Lake Nickel project
situated approximately 235 kilometres northeast of Thunder Bay in the province
of Ontario. The extensive drilling campaign on this project has recently
culminated in the VW Nickel deposit being substantially upgraded. This can be
summarised as follows:
• Increasing the global resource base by 48 per cent. to 22,407 tonnes of
Nickel Equivalent (NiEq) at 0.2 per cent. Nickel cut-off grade
• Upgrading the resource estimate significantly with 91 per cent. now in the
'Indicated' category. The resource estimate in 2007 by Scott Wilson Roscoe
Postle Associates was all in the 'Inferred category'.
• Improving the average grade of the resource by 25 per cent. to 0.45 per cent.
NiEq at 0.2 per cent. Nickel cut-off grade.
• Mineralization of the VW Nickel Deposit remains open along strike in both
directions to the east and west as well at depth
We believe that this substantially increased Resource confirms our view of the
strong economic potential of the VW Nickel deposit. We are now moving rapidly
ahead with the scoping and feasibility studies with the aim of becoming a Nickel
producer and at the same time continuing to expand the Resource.
In addition to the successes at the VW Nickel deposit further drilling work was
carried out on the nearby B4-7 Nickel deposit. The drilling produced some very
positive results which are set out in detail on the website, www.landore.com.
These results are now being interpreted by an independent consultant in order to
prepare an upgraded Resource estimate.
Lessard - Copper-zinc project
The Lessard project is centred on a historic VMS deposit located approximately
107 kilometres north of Chibougamau in the province of Quebec. A substantial
drilling programme has just been completed in early 2008 in order to produce a
Resource estimate and carry out further exploration. Results are pending and
will be released in the near future.
West Graham - Nickel project
This property is optioned to First Nickel Inc and is situated in the Sudbury
basin in the province of Ontario.
First Nickel has recently completed the results of their third substantial
drilling programme on the West Graham Nickel project. The results are excellent
and full details were included in a release in March 2008, again these can be
viewed on our website. First Nickel are now in the process of preparing a 43-101
Resource estimate for this project which will be available later this year.
Funding
In May 2007 we concluded a fund raising for approximately £2.1 million with
Consolidated Press Group (CPG) of Australia. We are very pleased to welcome CPG
as a substantial shareholder with a stake of approximately 17.5 per cent..
In the first quarter of 2008 options and warrants were exercised which produced
in excess of £400,000. I was pleased to be able to exercise my own options for
an investment of £294,700 and retain the shares and thereby increase my
investment in the Company. More recently we announced on 8 April 2008 that we
had placed a further 13,342,000 new shares at 15p per share in order to raise £2
million to finance further exploration activities.
All of the above financings have been on a non-brokered basis incurring minimum
expenses ensuring that most of the proceeds are for the Company's benefit. We
are grateful to significant shareholders for their support and we will continue
to require further funding as the Company progresses with its development
programme.
Outlook
Landore is planning continued drilling on the Junior Lake projects together with
technical and feasibility studies. We have developed a strong relationship with
the local communities and 2008 promises to be an exciting year. As usual
shareholders will be kept informed as results are received.
Once again, I would like to thank management and staff at Thunder Bay for their
excellent contribution towards the Company's sound performance this past year.
William Humphries
Chairman
16 April 2008
Operations report
Introduction
Landore Resources Limited through its 100 per cent. owned subsidiary, Landore
Resources Canada Inc., is actively engaged in mineral exploration in Eastern
Canada.
Landore owns or has the mineral rights to 11 properties owned 100 per cent. and
has option agreements on a further two properties.
Landore's primary focus is the Junior Lake Nickel project followed by the
Lessard copper-zinc project. In addition, substantial exploration work is being
carried out on the optioned West Graham nickel project by First Nickel Inc.
The Junior Lake Property - Nickel
The Junior Lake property is located in the province of Ontario, Canada,
approximately 235 kilometres north-northeast of Thunder Bay and is situated
within the Caribou-O-Sullivan Greenstone Belt in the Wabigoon Subprovince. The
VW Nickel Deposit is located at Ketchikan Lake toward the south eastern end of
the Junior Lake property and the B4-7 Deposit is located approximately 3
kilometres to the north-west of the VW Deposit.
The VW Nickel Deposit
During 2007 an infill and extension drill programme, consisting of 63 NQ size
holes for a total of 17,361 metres, was completed on the Junior Lake VW Nickel
Deposit, with one drill dedicated to extending the existing inferred resource at
both ends along strike and down dip with a second drill carrying out infill
drilling to advance the resource to 'Indicated' status.
As a result of this drilling programme, a Resource upgrade was carried out and
announced in March 2008. In summary the global resource base has been
substantially increased by 48 per cent. to 22,407 tonnes Nickel equivalent
(NiEq) at 0.2 per cent. Nickel cut-off grade. 91 per cent. of the new resource
is now in the `Indicated' category and the average grade has improved by 25 per
cent. to 0.45 per cent. NiEq. Significantly the VW deposit remains open along
strike in both directions to the east and west as well as at depth. This gives
scope for expansion of the Resource base and confirms the strong economic
potential of the VW Nickel Deposit.
Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA), Toronto, was
retained by Landore Resources Canada Inc. to independently carry out a Canadian
National Instrument 43-101 (NI43-101) compliant resource estimate for the VW
Nickel Deposit located at Landore's Junior Lake project, Ontario.
VW resource estimate at 0.2 per cent. Nickel Cut-Off Grade.
Extract from the resource estimate table produced by Scott Wilson RPA:
Indicated Resource
Cut-Off Grade Tonnes Co Pt Pd Au
Ni% (000's) Ni% Cu% ppm ppb ppb ppb NiEq%
0.2% 4,490 0.393 0.054 155 28 36 11 0.453
Inferred Resource
Cut-Off Grade Tonnes Co Pt Pd Au
Ni% (000's) Ni% Cu% ppm ppb ppb ppb NiEq%
0.2% 473 0.380 0.050 147 30 35 11 0.437
Contained Metal
Ni Cu Co Pt Pd Au NiEq
Total contained Tonnes Tonnes Tonnes Ounces Ounces Ounces Tonnes
metal 19,443 2,661 765 4,498 5,729 1,755 22,407
The contained Nickel in the global resource base increased by 36 per cent.. In
the 2007 resource estimate cobalt was not included. However, results from
drilling in the recently completed campaign showed a marked increase in cobalt
levels in the western extension of the resource. Accordingly, cobalt has been
included in the new resource estimate and contributes to the increased global
resource.
Drilling has now tested the VW deposit at approximately 25 x 50 metre spacing
over a strike length of 450 metres and to a vertical depth of approximately 300
metres. This close drill spacing has provided sufficient confidence for the
majority of the resource to be advanced to the `Indicated' category, a necessary
requirement for feasibility studies.
Mineralization on the VW Nickel Deposit remains open along strike in both
directions to the east and west as well as at depth.
Scott Wilson RPA is currently preparing a Canadian National Instrument 43-101
(NI43-101) compliant technical report on the resource upgrade for the VW Nickel
Deposit.
B4-7 Nickel-Copper Deposit
During the second half of 2007 an infill drill programme, consisting of 16 NQ
size holes for a total of 3,580 metres, was completed on the historic B4-7
nickel-copper-cobalt-platinum group elements (Ni-Cu-Co-PGE) deposit, located
just 3 kilometres from the VW Nickel Deposit.
Drilling intersected wide zones (up to 10 metres true width) of nickel
mineralization, with assay results frequently returning grades in excess of 1
per cent. nickel together with substantial credits of copper, assaying up to
1.65 per cent. and cobalt assaying up to 0.33 per cent..
The programme successfully filled the remaining gaps in the deposit and has
confirmed the continuity of the mineralization. The deposit remains open down
plunge to the West.
The data has been collated and forwarded to Snowden Mining Industry Consultants
(Snowden) of Perth, Australia, who have been engaged to independently prepare an
Australasian Joint Ore Reserves Committee (JORC) Code standard (2004) Resource
estimate and report on the B4-7 Nickel-Copper Deposit.
Full details of all the drilling results on the VW Nickel Deposit and the B4-7
Nickel Copper Deposit are set out on the website www.landore.com
Memorandum of Understanding (MOU)
In June 2007 Landore Resources Canada Inc. entered into an Memorandum of
Understanding (MOU) with the Whitesand First Nation and Animbiigoo Zaagi'igan
Anishinaabek (First Nations) within the Robinson-Superior Treaty Area where both
maintain overlapping traditional territories in the area north of Lake Nipigon
which includes the Junior Lake area properties.
This agreement formalizes the desire and commitment to develop a positive,
mutually beneficial relationship amongst all parties and establishes the process
by which this is to be accomplished while Landore is conducting exploration and
advanced exploration activities in the area. Landore recognizes and respects the
Aboriginal Treaty rights of the First Nations and the communities represented by
the Chiefs of the First Nations support the exploration and advanced exploration
activities of Landore.
Included in the MOU is a provision to finalize an Impact and Benefits Agreement
should exploration results lead to completion of a positive Feasibility Study
and before commencement of any mine development.
Metallurgical testing
SGS Lakefield Research Limited of Lakefield, Ontario, is carrying out additional
metallurgical testing in preparation for scoping and pre-feasibility studies
scheduled for the second half of 2008.
Baseline studies
Golder Associates of Sudbury, Ontario, commenced baseline aquatic studies in
February 2007 on lakes and drainage tributaries in the vicinity of Junior Lake.
These studies, repeated three monthly, are proceeding well and will continue
through feasibility.
In addition Golders have completed a 'Fish community and Fish habitat' survey of
Lake Ketchikan, which is the lake closest to the VW and B4-7 deposits, in
addition to a 'Bedrock resistivity' survey on the northern side of the lake to
determine depth of silt and bedrock competence.
Junior Lake claim staking
During 2007 Landore staked and recorded 20 new claims to the east and south-east
of the Junior Lake property. The new claims were staked as a direct result of
the positive advancement of the VW Nickel deposit and the good potential for the
discovery of additional base and precious metal mineralization along strike
within this geological setting in the East-Central Caribou Lake greenstone belt.
The new claims extend the Junior Lake property almost 5 kilometres to the east
and south covering eastern strike extension of the structurally deformed geology
hosting the VW zone. The Junior Lake area properties now extend over a strike
length of 28 kilometres.
In addition, Landore has staked and recorded 5 new claims to the north and south
of the VW Zone for inclusion within the proposed area being advanced to Lease
status, required for possible mining.
The Junior Lake property now consists of 71 unpatented claims (774 units
covering 12,384 hectares) plus 2 leases (52.97 hectares) totalling 12,437
hectares.
Planned works
VW Nickel Deposit: Following receipt of the technical report, being carried out
by Scott Wilson RPA, a Scoping/engineering study will be completed on the VW
Nickel deposit in preparation for pre-feasibility studies scheduled to be
commenced fourth quarter 2008.
In addition, drilling will recommence on the VW Nickel deposit, with 4,000
metres being programmed for further extension and infill drilling plus 1,000
metres for geotechnical work for open-pit design requirements.
B4-7 Deposit: Following receipt of the Resource Estimate, being carried out by
Snowden, drilling will recommence on the B4-7 deposit, with 4,000 metres being
programmed for further extension and infill drilling.
Exploration: 3,000 metres of drilling has been programmed for exploration of
known mineralized occurrences on the Junior Lake property, with a further 3,000
metres allocated for drilling of the 'Carrot top zone' and the 'Grassy Pond
sequence', located on the adjacent optioned Lamaune property.
Lessard Property - copper-zinc:
The Lessard property, located approximately 107 kilometres north of the town of
Chibougamau in the province of Quebec, comprises 91 claims for 1,456 hectares.
Lessard hosts a copper-zinc-silver deposit with a historic resource reported in
a feasibility study in 1975 by Selco Mining Corporation Ltd of 1,463,835 tons at
1.73 per cent. Copper, 2.96 per cent. Zinc, 1.1oz/t Silver and 0.019oz/t Gold,
after allowance for dilution. (The resource is not compliant with NI43-101).
In 2006 Landore completed a successful drilling campaign on the Lessard deposit
to confirm previous drilling results. In addition a Geotech VTEM penetrating
time-domain airborne electromagnetic and magnetic survey was carried out over
the entire property. The survey highlighted possible strike extensions of the
existing resource and also developed new targets for follow-up exploration.
A second drilling campaign, consisting of 25 NQ diamond drill holes for a total
of 9,581 metres, has been completed on the deposit in early 2008 in order to
provide closer spacing to enable a JORC compliant Resource Estimation and to
target possible strike extensions of the existing deposit.
In addition a further six exploration NQ diamond drill holes, for a total of
1,056 metres, were drilled on other targets generated by the airborne survey.
Drilling results are pending and will be issued in the near future.
West Graham/First Nickel Option - Nickel
The West Graham property consists of one patented lot owned outright by Landore
Resources Inc. of 130 hectares, located in Northern Ontario, 17 kilometres from
Sudbury on the southern rim of the Sudbury Intrusive Complex and contains the
historic 'Conwest deposit'.
The Conwest Deposit was estimated in the 1960's to have mineral inventory of 4.3
million tons grading 0.53 per cent. nickel and 0.33 per cent. copper. This
historic resource predates the implementation of NI43-101 standards and
guidelines and should be considered non-compliant. At depth the Conwest Deposit
is interpreted to be contiguous with the Lockerby East Zone.
First Nickel Inc. entered into an option agreement in November 2005 with Landore
Resources Canada Inc. to acquire a 70 per cent. interest in the West Graham
property which is strategically located immediately to the south of the East
Zone of First Nickel's Lockerby Mine. The agreement provides for First Nickel to
make cash payments to Landore of C$150,000 and carry out exploration and
development expenditures of C$6 million over a four-year period.
First Nickel Inc. reported in March 2008 the results of 22 diamond drill holes
representing 5,469 metres of diamond drilling on the West Graham Property during
the 2007 exploration programme and the first two holes of the 2008 exploration
programme.
Results to date have met expectations based on the previous exploration
programmes completed by First Nickel. Highlights of the drill programme include
FN12045 with 0.59 per cent. Ni and 0.44 per cent. Cu over 70.20 metres,
including 1.14 per cent. Ni and 0.60 per cent. Cu over 10.50 metres; and FN12050
with 55 per cent. NI and 0.43 per cent. Cu over 86.70 metres, including 1.15 per
cent. Ni and 0.71 per cent. Cu over 12.70 metres.
The current drill programme has been designed to provide the drill density
required to complete an NI43-101 compliant Resource Estimate on the Conwest
Deposit (which forms part of the West Graham Property). The drill programme has
since been expanded to a total of 10,000 metres based on the results to date and
is scheduled for completion in June 2008. The new NI43-10 Resource Estimate will
be completed after all analytical results have been received and modelled from
the 2007-2008 drill programme.
Full details of the drill results are set out on the Company's website
www.landore.com
Miminiska Lake Project - Gold
The Miminiska Lake property is located 115 kilometres to the east of Pickle
Lake, Ontario and 180 kilometres to the southeast of the Placer Dome Musselwhite
Mine and has a total area of 5,445 hectares.
Mineralization is hosted in iron formation in a similar setting to the
Musselwhite gold deposit which has so far produced 2.17 million ounces with
reserves currently estimated at over 1.77 million ounces.
Landore has completed four drilling campaigns between 2003 and 2005 on the
Miminiska gold occurrence with 47 NQ diamond drill holes for 9,349 metres,
focusing on two potential shoots within a known 800 metres strike length.
Excellent results were received with grades reporting up to 131g/t gold over 0.5
metres and 40.2g/t over 2.3 metres.
No further work has been carried during 2007 whilst the Company is focusing all
of its efforts on Junior Lake and Lessard projects.
Other properties
The Company has other non-core exploration properties which includes grass roots
exploration and defined drill targets. The Company is actively seeking joint
venture partners for all these projects.
Consolidated income statement
for the year ended 31 December 2007
31 December 31 December
2007 2006
£ £
Exploration costs (1,739,758) (1,206,156)
Administrative expenses (986,572) (935,747)
--------- ---------
Operating loss (2,726,330) (2,141,903)
Finance income 99,015 175,659
--------- ---------
Loss before income tax (2,627,315) (1,966,244)
Income tax expense - -
--------- ---------
Loss for the financial year (2,627,315) (1,966,244)
--------- ---------
Attributable to:
Equity holders of the Company (2,627,315) (1,966,244)
--------- ---------
Loss per share for losses attributable to the
equity holders of the Company during the year
- basic (0.023) (0.021)
--------- ---------
- diluted (0.023) (0.021)
--------- ---------
The Group's operating loss relates to continuing operations.
Consolidated balance sheet
at 31 December 2007
At 31 December At 31 December
2007 2006
£ £
Assets
Non current assets
Goodwill - -
Property, plant and equipment 96,852 47,505
Investments - -
---------- ----------
96,852 47,505
---------- ----------
Current assets
Trade and other receivables 65,787 13,663
Cash and cash equivalents 480,184 845,704
---------- ----------
545,971 859,367
---------- ----------
Total assets 642,823 906,872
---------- ----------
Equity
Capital and reserves attributable to the
Company's equity holders
Share capital 1,218,328 1,003,470
Share premium 7,951,780 6,021,688
Share options 501,163 397,905
Warrants 43,571 43,571
Retained earnings (9,446,194) (6,827,581)
Cumulative translation adjustment 125,924 164,664
---------- ----------
Total equity 394,572 803,717
---------- ----------
Liabilities
Current liabilities
Trade payables 248,251 103,155
---------- ----------
Total liabilities 248,251 103,155
---------- ----------
Total equity and liabilities 642,823 906,872
---------- ----------
Consolidated statement of changes in equity
for the year ended 31 December 2007
31 December 31 December
2007 2006
£ £
Loss for the financial year (2,627,315) (1,966,244)
Translation adjustment on consolidation 38,740 142,042
---------- ----------
Net loss recognised directly in equity (2,666,055) (1,824,202)
Issue of ordinary share capital 214,858 73,437
Share premium arising on issue of ordinary
share capital 1,930,092 631,562
Issue costs - (20,000)
Issue of share options 111,960 150,374
---------- ----------
Net decrease in shareholders' funds (409,145) (988,829)
Opening shareholders' funds 803,717 1,792,546
---------- ----------
Closing shareholders' funds 394,572 803,717
---------- ----------
Consolidated cash flow statement
for the year ended 31 December 2007
31 December 31 December
2007 2006
£ £
Cash flows from operating activities
Operating loss (2,726,330) (2,141,903)
Finance income 99,015 175,659
Depreciation of tangible fixed assets 23,200 16,560
Foreign exchange (gain)/loss on non-cash items (130,495) 159,657
Share based payment 111,960 150,374
(Increase)/decrease in debtors (52,124) 9,167
Increase/(decrease) in creditors 145,096 (42,459)
---------- ----------
Net cash outflow from operating activities (2,529,678) (1,672,945)
Cash flows from investing activities
Purchase of property, plant and equipment (61,440) (11,653)
---------- ----------
(61,440) (11,653)
Cash flows from financing activities
Issue of ordinary share capital 2,144,950 704,999
Issue costs - (20,000)
---------- ----------
2,144,950 684,999
Net decrease in cash and cash equivalents (446,168) (999,599)
Cash and cash equivalents at beginning of year 845,704 1,848,807
Exchange gains on cash and cash equivalents 80,648 (3,504)
---------- ----------
Cash and cash equivalents at end of year 480,184 845,704
---------- ----------
Accounting policies
Basis of accounting
The financial statements have been prepared in accordance with those
International Financial Reporting Standards ('IFRS') standards and International
Financial Reporting Interpretations Committee ('IFRIC') interpretations issued
and effective or issued and early adopted as at the time of preparing these
financial statements (April 2008).
The financial statements have been prepared on the historical cost basis. The
functional currency for the Group is considered to be UK Sterling. The principal
accounting policies adopted are set out below.
The Directors consider the going concern basis of preparation to be appropriate
as the Company has sufficient cash reserves to permit it to continue trading for
a period of at least twelve months following the date of approval of these
accounts.
Landore Resources Limited is domiciled in Guernsey.
Changes to accounting standards
The Group has adopted IFRS 7 'Financial instruments: Disclosure' and the
amendment to IAS 1 'Presentation of financial statements' which are mandatory
for years ending 31 December 2007. This has resulted in additional disclosures
but no impact on the reported results or financial position.
The following standards and interpretations have been endorsed by the EU by the
year end but are not yet effective for the year ended 31 December 2007:
¿International Financial Reporting Interpretations Committee 11 'Group and
treasury share transactions'; and
¿International Financial Reporting Standard 8 'Operating Segments'.
The Group has considered the impact of these new standards and interpretations
in future periods and no significant impact is expected on the Group's reported
results or financial position. Neither of the new standards has been adopted
early.
Notes to the financial statements
for the year ended 31 December 2007
1. Loss from operations
2007 2006
£ £
Loss from operation is stated after charging:
Depreciation of property, plant and equipment 23,200 16,560
Auditors' remuneration - audit services 24,550 25,238
---------- ----------
2. Taxation
In the year to 31 December 2007, Landore Resources Limited was eligible for
exemption from income tax in Guernsey under the Income Tax (Exempt Bodies)
(Guernsey) Ordinance 1989 and 1992 as amended. An annual fee of £600 is paid in
this respect. With effect from 1 January 2008, Guernsey abolished the exempt
company regime. Therefore, the Company will be taxed at the company standard
rate of 0 per cent. with effect from 1 January 2008.
The Company's subsidiary, Landore Resources Canada Inc., is subject to Canadian
Federal tax. No tax has been provided in the accounts due to losses incurred by
that company to date. That company has estimated non-capital losses of
CA$3,117,000 as at 31 December 2007 which expire between 2008 and 2015 (2006:
CA$1,020,000 expiring between 2006 and 2009). Landore Resources Canada Inc also
has a subsidiary, Brancote US Inc, which is subject to taxation in the United
States. This subsidiary has estimated non-capital losses of US$819,000 which
expire between 2010 and 2020.
3. Mineral properties
Accumulated
Net expenditure at
1 January expense 31 December
2007 in the year 2007
Exploration costs £ £ £
Miminiska Lake 1,130,068 1,709 1,131,777
Junior Lake 1,911,884 1,782,640 3,694,524
Frond Lake 68,304 (618) 67,686
Wottam 61,558 - 61,558
Lamaune 299,479 1,660 301,139
Seeley Lake 86,663 2,423 89,086
Lessard 173,157 (54,238) 118,919
Other 25,570 6,182 31,752
--------- ---------- ----------
3,756,683 1,739,758 5,496,441
--------- ---------- ----------
3.1 Miminiska Lake
Miminiska Lake, wholly owned by the Company, is a gold exploration project
located approximately 115 kilometres east of Pickle Lake in Northern Ontario,
Canada. The property consists of 28 patented and 2 staked claims.
3.2 Junior Lake
Junior Lake is a nickel, copper, platinum group metals and gold exploration
project located approximately 250 kilometres north of Thunder Bay in Northern
Ontario, Canada. The property consists of two leased claims wholly owned by the
Company.
In addition, Junior Lake includes Auden, a nickel, copper, platinum group of
metals and gold exploration project. The property consists of 71 staked mining
claims surrounding the two Junior Lake leases and is wholly owned by the
Company, except for a portion that is subject to a 2 per cent. net smelter
return ('NSR').
3.3 Frond Lake
Frond Lake is a gold property located about 125 kilometres east of Pickle Lake,
Ontario. The property is comprised of 24 patented claims contiguous to the east
of the Wottam property. On 22 December 2005, the Company purchased the property
outright subject to underlying 2 per cent. NSR agreements.
3.4 Wottam
The Wottam property is a gold exploration project located 120 kilometres east of
Pickle Lake in Northern Ontario, Canada. The property is wholly owned by the
Company and includes 20 claims contiguous to the east of the Miminiska and Frond
properties.
3.5 Lamaune Lake
Effective 5 September 2002, the Company entered into an Option Agreement with
Michael Stares, Stephen Stares, James Dawson and Stares Contracting Corp.
relating to eight mining claims located near Lamaune Lake, Ontario. The Lamaune
Lake property is contiguous with the Auden and Junior Lake property claims held
by the Company. The Company earned 51 per cent. interest in the Lamaune Lake
property and has the ability to earn a further 29 per cent. subject to the
conditions set forth in the Option Agreement.
3.6 Seeley Lake
Seeley Lake is an industrial minerals nepheline-syenite property, located 250
kilometres to the east of Thunder Bay, Ontario, on the north of Lake Superior.
The property is comprised of 18 leased claims wholly owned by the Company.
3.7 Lessard
Lessard is a zinc, copper property comprised of 104 mining claims located
approximately 107 kilometres north of the town of Chibougamau, in the province
of Quebec, Canada. The property is wholly owned by the Company.
3.8 Swole Lake
Included in other properties, Swole Lake is a nickel, copper, platinum group
element property comprised of one claim totalling 144 hectares, contiguous to
the north of the Auden claims. The property was optioned from Stares Corp. on 19
June 2006. The Company can earn 100 per cent. interest in the property by making
payments of $50,000 over three years, subject to a 2 per cent. NSR.
3.9 West Graham
Included in other properties, West Graham is a nickel, copper, platinum group
metals property comprised of one patented lot wholly owned by Landore. The
property is located 25 kilometres southwest of Sudbury and 1.5 kilometres east
of the Lockerby Nickel mine. First Nickel Inc. has optioned the property from
Landore and, under the terms of an agreement, can earn 70 per cent. by making
further payments and spending $6 million in exploration costs over four years
with the possibility of earning a further 15 per cent. interest subject to
certain conditions.
4. Loss per share
The calculation of the basic loss per share is based on the loss for the
financial year divided by the weighted average number of shares being
115,006,332 in issue during the year.
Diluted loss per share
The potential ordinary shares which arise as a result of the options in issue
are not dilutive under the terms of IAS 33 because they would reduce the loss
per share. Accordingly there is no difference between the basic and diluted loss
per share.
5. Reconciliation of net cashflow to movement in net funds
2007 2006
£ £
Opening net funds 845,704 1,848,807
(Decrease)/increase in cash and cash equivalents (446,168) (999,599)
---------- ----------
Net funds before foreign exchange 399,536 849,208
Exchange gains/losses 80,648 (3,504)
---------- ----------
Closing net funds 480,184 845,704
---------- ----------
6. Analysis of net funds
At 1 January Exchange At 31 December
2007 Cashflow gains 2007
£ £ £ £
Cash and cash equivalents 845,704 (446,168) 80,648 480,184
--------- --------- --------- ---------
Total 845,704 (446,168) 80,648 480,184
--------- --------- --------- ---------
7. Subsequent events
It was announced on 8 April 2008 that the Company had raised £2,001,300 by
placing 13,342,000 new ordinary shares at 1p each at a price of 15p per share to
finance working capital and exploration expenditure.
8. Publication of non statutory accounts
The financial information set out in this preliminary announcement does not
constitute statutory accounts.
The balance sheet at 31 December 2007 and the profit and loss account, cash flow
statement and associated notes for the year then ended have been extracted from
the Group's 2007 statutory financial statements upon which the auditors' opinion
is unqualified.
9. Annual Report
The Annual Report for the year ended 31 December 2007 will be posted to
shareholders shortly. The Annual General Meeting of the Company will be held at
the Cavalry & Guards Club, 127 Piccadilly, London W1V 0PX, on 14 May 2008 at
11.00 a.m.
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